very, very privileged to be with kkr. i have been there three and a half years, two years a partner. it is one of the biggest private equity firms in the world, $130 billion under management. they are in 40 countries. many of them multiple times. many of them multiple times. mexico, canada, u.k., and the mideast countries as well. i also have academic appointments. york,h once a week in new a course called the north american decades, which is i try to describe now. we are no longer in the american century but we are not yet in the chinese century or asian century. that is a good policy school right here in our nation's capital. it has been great fun. i have done it for seven semesters. i have a chair at usc where i speak a -- where i spent a week per semester. we do our version of the "shark take." i am a venture capitalist in 11 startups. i have a fellowship at harvard as well. we started this morning with an event for that. i am on the speaking circuit. this is the highest form of white-collar crime in america. [laughte

castle maker for kkr. the deal could be worth within $5 billion.ought the new jersey based cap said job from pfizer in 2011 from this $2.5 billion. let's take a look at headlines in today's edition of "the wall street journal." pepsico said it wants to sell healthy food but consumers just want chips. it wants to make good for you snacks, but much of the revenue growth with high salt standbys such as to readers that she does. china open its market to the world but the world says no thanks. beijing wants foreign funds to come to china but pricey markets and a weakening currency of keeping overseas investors away. finally the volatility paradox :-colon-mark is that a soaring staircase. they'll flock to exchange the track market volatility to make what profit strain isolated periods of market. they interest rates higher than most expect. we'll talk to fox news contributor gary b. smith. the snow and freezing temperatures in the northern united states prompted widespread flight delays. fox senior meteorologist janice dean will tell us what's in store in

kkr is literally across fifth avenue, almost more trump tower is.nt over after having a variety of exploratory discussions with folks back and forth. and i think the way to understand where the president-elect and, indeed, his team are is to recognize that what they are now doing is a process where he personally and the team collectively are pretty -- putting policies around what understandably were campaign rhetoric. you run on very short statements, and now they're in the process of again putting architecture around that for true policies through true strategies. what we did actually in this conversation which i found fascinating was, talk about one of those campaign promises, if you will, campaign slogans. and then discuss what would be around it. so should we rebuild the wall clocks we should build the wall but in the context of an overall comprehensive strategy to improve security on our southern border which would include more board officers, more reconnaissance assets assets, me technology, more this, more that, more work with our mexican nei

investment fund kkr in talks to buy the unit. we have two more trading days here in tokyo. we'll keep you updated on the latest moves as they happen. ramin mellegard, reporting from the tokyo stock exchange. >>> japanese labor authorities advevertising giant dentsu to prosecutors. theyey suspectct the company violated labor lawaws when employees were forced to work exceedingly long hours. officials of the tokyo labor bureau began a probe last month after an employee committed suicide. they ruled the death of the 24-year-old woman was due to overwork. the officials suspect the employees were forced to under-report their working hours, which exceeded agreement with the labor union. labor authorities also searched dentsu's offices in osaka, nagoya and elsewhere. they'll continue their investigatation. dentsu made its first official apology. company representatives said they're taking the bureau's action seriously. >>> in south korea, more single people are breaking with tradition and living on their own. that's captured the attention of businesses, especially in the property s

kkr andtium including morgan stanley has offered as much as 5.5 billion u.s. australian betting group. shares soared in sydney trading after the bid opened the field to other potential suitors. that is your bloomberg business flash. guy, matt. the rating agency says at this reflects the view that losses will depress the sector's profitability and a road capital -- erode capital. a negative outlook on europe. place, lows in a sad growth, broken banking system. the essential point about continental europe is that 80% of lending in continental europe is a complete inverse of the u.s.. what i have picked up is that there is some real sense of resolve, particularly in italy, to solve the banking issues. what is us talk about happening in europe and whether it is a sad place for a fixed income point of view. mark nash, anything in europe that is attractive right now? we have seen the spread buying out across the atlantic. we are seeing pretty much everything else blowing out as well on the periphery. what is the right trade to make in europe? mark: i think you have

a consortium including kkr, morgan stanley has made a $5.5 billion takeover bid. they will set up a bidding war which made a lower offer in october. they plan to sell or -- are a step closer in japan after an upper house committee approved new legislation. the bill is expected to pass a final debate which begins anytime now. it could open the door to billions of investment. >> confidence among japan's manufacturer is improved for the first time since june last year as the weaker yen improved prospects. sentiments rose to 10 from six. the outlook as up to 8-6. a planned 5.5% increase in business investments was below estimates. shareholders approved him as chairman. he has a machine capable of trading 10 million cars a year. nissan bought a stake in october after the fuel economy scandal threatened to hand mitsubishi its first annual loss in eight years. this is bloomberg. president-elect donald trump has signaled the beginning of a new pro-fossil fuel era with his choice of exxon tillerson. -- rex tillerson. how would that differ from some of the values projected

kkr will make a $3 billion profit on its investment.t share in europe has gone up for the first time since the emissions scandal. vw also did better than the industry as a whole, sales up more than 6%. japan is trying to resolve a territorial dispute with russia that has lasted for seven decades. prime minister shinzo abe met today with president vladimir putin at a japanese resort. japan wants to return the four you will divulge the outcome of the meeting tomorrow. this is bloomberg. investors reducing their cash position, putting it to work. are we ready for a market cause? three charts from bank of america help tell the story. that is next. ♪ alix: welcome to "bloomberg daybreak." investors buying banks, buying the dollar. in bank of america's latest survey, they highlighted some interesting factoids. one is how much cash is being put to work. the blue line is the s&p and the gray bars are the average cash balance percentagewise. that's about 4.8% from 5% in november. down by about 1% in just two months. s&p taking a pause. we are no

very, very privileged to be with kkr.ave been there three and a half years, two years a partner. it is one of the biggest private equity firms in the world, $130 billion under management. they are in 40 countries. many of them multiple times. many of them multiple times. mexico, canada, u.k., and the mideast countries as well. i also have academic appointments. york,h once a week in new a course called the north american decades, which is i try to describe now. we are no longer in the american century but we are not yet in the chinese century or asian century. that is a good policy school right here in our nation's capital. it has been great fun. i have done it for seven semesters. i have a chair at usc where i speak a -- where i spent a week per semester. we do our version of the "shark take." i am a venture capitalist in 11 startups. i have a fellowship at harvard as well. we started this morning with an event for that. i am on the speaking circuit. this is the highest form of white-collar crime in america. [laughter] g

kkr, because of its structure, as a partnership, is not in any of the indexes, so it's underowned. we think kkr is trading for about $16. the value of their portfolio is way up borgwarner is way up. we think it will be stronger. a stronger general economy kept at these levels. and borgwarner is just very, very cheap. zimmer, the population keeps getting older. hips and knees will be in demand. that stock is very weak. it's trading at about 104. >> dave, what do you like? >> we like hexcel. they make boeing's new aircraft lighter, therefore more fuel efficient, which is more important since energy prices have gone up. high payback and it clearly is benefiting by a stronger economy. plus they're an exporter to some degree. that will be a benefit in this new administration. so we like that. applied materials makes the machinery to make semiconductors. it's not just the volume of semis which has been going up quite rapidly with the economy, but new products. we're all going to organic led screens and iphones next year, and we're going to 3-d nan which means you'll have more memory in t

>> >> this has been brought by the pacific consortium, 30% share for morgan stanley, kkr, and macquarieroup taking up 10%. the consortium is offering $40 to $45 per share. that is $5.5 billion. they would sell their wagering and gaming business. the investors would get cash and a stake in that new business. that would be valued between $ $1.60 perllar 66 -- share. 1the consortium will hang on to the lotteries part of that business, which generates two thirds of revenue. >> where does that leave the bed made by tabcorp. >> this offer was made in october, $4.5 billion, which it was valued as not as appealing. there is now two bids on the table and illustrates how attractive the space is. >> billionaire rupert murdoch may finally get what he has wanted for years, complete control of sky. 21st century fox has agreed to take over the european broadcaster for $14.6 billion. no premium to the preliminary offer. what is going on? >> i don't think anybody would expect it at this time. going forward, fox would need to get 75% of the rest of the shareholders to approve the deal. we reported a coup

very, very privileged to be with kkr. i have been there three and a half years, two years a partner. it is one of the biggest private equity firms in the world, $130 billion under management. they are in 40 countries. many of them multiple times. mexico, canada, u.k., and the mideast countries as well. i also have academic appointments. i teach once a week in new york, a course called the north american decades, which is i try to describe now. we are no longer in the american century but we are not yet in the chinese century or asian century. that is a good policy school right here in our nation's capital. it has been great fun. i have done it for seven semesters. i have a chair at usc where i spent a week per semester. we do our version of the "shark take." i am a venture capitalist in 11 startups. i have a fellowship at harvard as well. we started this morning with an event for that. i am on the speaking circuit. this is the highest form of white-collar crime in america. [laughter] gen. petraeus: i do participate in tha

we have investors like kkr's global growth fund, summit, and strategic investors like samsung.f course, the japanese investor coming big into the u.s. as well. softbank has really helped us expand into asia. at this point, there's no ipo on the agenda. many companiesso get ahead of the cyber crisis, the cyber threats they are facing your heads down growing the business. caroline: thank you so much. trace,eagan, ceo of dark based here in san francisco. tomorrow we will continue this conversation in the founder and ceo of white ops will join us. coming up, the next big thing in silicon valley may be an older player. -- we'lltake a look nvidia isk at thhow surging. ♪ hasline: 23-year-old nvidia had an impressive 2016, the company is the best performer on the nasdaq 100 stock index this year. much of the success is down to the chief executive, who's won over many investors with claims that his products will become key components of developing technologies, from voice recognition to self driving cars. our reporter covers the company and joins us now. a great story on the success sto

>> this has been brought by the pacific consortium, 30% share andmorgan stanley, kkr, macquarie groupg up 10%. they are offering $40 to $45 per share. that is $5.5 billion. they would sell their wagering and gaming business. get cash and would a stake in that new business. to consortium will hang on the lotteries part of that business, which generates two thirds of revenue. leave the bedthat made by catabcorp. >> it's not as appealing now. there are two bids on the table and illustrates how attractive the spaces. billionaire rupert murdoch may finally get what he has wanted for years, complete control of sky. 21st century fox has agreed to take over the european broadcaster for $14.6 billion. what is going on? >> i don't think anybody would expect it at this time. going forward, fox would need to get 75% of the rest of the shareholders to approve the deal , and we reported a couple of days ago that they are open to bumping if they have to. fox would prefer to get the deal done at the offer they made, but they are open to bumping, and they might need to. not several dollars or pounds,

kkr is my favorite. kkr is still under loved because of its partnership structure. some asset management firms haven't caught up. they are cheap. there is not a long list. you can probably talk about maybe citi. they have a lot of challenges. fundamentally the business of being a bank is just not a good a business as the glory days. so you can't just justify the prices that these things traded for. >> andy, a lot of people are expecting a rollback of sorts of dodd-frank. they are expecting rates token higher as the yield curve steepens here. it is not guaranteed at this point. what if those things don't happen or they take longer than anticipated? do you change your view or are you in this for the long term? >> even if things don't materialize quickly enough look at valuations that you are paying. citi group pays at price to earnings of 12. that is a very big discount that affords a lot of wiggle room. >> the mid cap banks are trading at 18 times forward. the s&p is 19. so there are individual names that are still cheap but broadly banks have gone from being cheap t

the move following reports that the company is in talks with kkr on a deal worth $1.3 billion that couldreached sometime next month. >>> lloyds banking group making moves ahead of the uk's planned exit of the european union. the financial times is reporting that the bank is creating a subsidiary in germany or the nether lands in an effort to ensure it can maintain clients in those countries and ensure it has access to the european payment system. it's the only london-based bank without a subsidiary in another eu country. >> and it matters less to lloyds it has less banking revenue which will be threatened. and less european revenue. s no a massive brexit factor story. >> time for top trending news. celebrities from around the world paying tribute to carrie fisher last night. the iconic actress best known for her role as princess leia in the "star wars" film series passing away. mark hamill saying it's never easy to lose such a vital and irreplaceable member of the family but this is heart blabr g heartbreaking. the tributes poured in from around hollywood. harrison ford saying carrie was

. >> what do you think of kkr? >> oh, i am a believer. i think it's good. we have a market that wants to do some ipos. we need new ipos. >> kyle in virginia. >> where do you see cintel in a year? >> i don't know. that's a regional play. i have to do work on that. i like at&t and verizon but it's not the same business. i have to do some work. gino in florida. >> how are you tonight, jim? >> i'm good. >> i enjoy your show. watch it and tape it every night. >> oh, thank you! >> i have a question about opk. i know dr. frost is one of your favorites. >> he is. >> he seems to have slowed down buying his stock. it's trading kind of crazy. >> i tell you, gene, i have been sticking with it from the low single digits to the mid. came back into the acquisition. but i like it. it's a money maker. i believe in their tests. i think they're very good. vera, i hope i'm not mispronouncing it in colorado. >> hi, booyah. >> booyah. >> my question is about kimberly clark. i was wondering. i have always thought of it as a bit boring. and i wondered what your thoughts were regar

a merger monday this morning, a swiss company said to be in talk to acquire kkr, details on potential billion-dollar deal coming up this morning. another self-driving car hits the golden state, california dmv's decision to allow to test automated vehicles, everybody is getting on board now. are ceo's ready for new president? how that may dictate performance and your life. from standing rock, north dakota to flint, mitch geant, -- michigan, two veterans will apply it to water crisis where high lead content and infrastructure created serious health concern for residents in flint. first-class author and marines core veteran george the second, who is director of veterans now. as a veteran why was it so important for you to protest in north dakota? >> i saw the resemblance of both flint, michigan and north dakota had the same problem or issue where they didn't want pipes put in on their land but the residents and the citizens of flint wanted pipes put in and they won't put infrastructure in there. we only have 499 pipes put in so far out of a year where they are not calling the situation i

kkr made ans the offer but it was inadequate.ssumptions that were either incorrect, inconsiderate -- inconsistent. page wasthat the overly optimistic. so it is a no go. theontinues to believe that proposal for the merger is in the best interest of the company. it is a unanimous decision by all of the shareholders. tatts in to purchase the past and the merger would alian bettingaustr company. it would then be able to take on online rivals. it would give australians easy access to making bets. rishaad: the biggest obstacle to the deal would be the australian regulator. what are people saying about that at the moment? prevented theion company's from getting together fromevented the companies getting together 10 years ago. merger had its way paved for it by the regulator. the eventual buyer would gain a business that generated record earnings in its most recent fiscal year. it operates in almost every australian state. it makes it very attractive. will thethe -- dollar's dominance continue to dominate? look at gold as well. a year to

includesonsortium , morgane group, kkr stanley, and first state as well.s it seems. the consortium will separately list tatts group's gaming andness, so $3.40 a share part of that unit. the consortium would hang onto the lottery business, which generates two thirds of revenue. the market enjoying this, up 9% right now. leaved: where does this this rival bid by tabcorp? that was made in october. at the time, $4.5 billion deal lookedfor dollars $.34, good in october, but not so appealing now. have a look it will at this new bid from macquarie consortium. having these two bids does highlight how attractive the spaces. all strain gamblers are deliciously stupid, losing more per capita than any other nation. accc might have concerns about that tire. this is the all strain consumer regulator. much crossover between those two businesses and their plan to form a pan-austrian gaming company that can compete with international competitors, and it might raise regulatory concerns, and maybe this is where macquarie group sees they might have an advantage. at $5.5that n

and donald trump kkrdoesn't th and no one thinks that a foreign government interfered with the election, what proof does anybody have? i have kvc=%qñ,seen zero.>> r intelligence sources show that ÷ interrupt the campaign and get president elect trump elected.>> trump fired back saying these are the same people that said that saw tom hussein çhad with -- saddam hussein had weapons e, destruction. >> reporter: they even called on russia to hack 5ahwemail.>> russia, if you are listening, i hope you are able to find the 30,000 missing emails.>>> e.ct called on both sides for a slañ probe. aama has called for a few -- a full review. >>> i will go after russia in every way. i think they interfered and i hol responsible. >>> 25 people have been killed in the bombing -- in a bombing at vnia chapel in egypt. these are photos from the scene in cairo. no group has yet to claim responsibility from the attack. stay with us on kron 4 news o7f% weekend for updates on the story. >>> ash carter announcing that additional troops will be deployed q%to syria. it is part of a fight to drive out isis f

you do have to look a little harder and see what's still cheap, kkr is our favorite name. own it in an index fund because it is partnership structure, but we think that's probably going to change this year. it's a wonderful business. we think it's worth $26, it's trading for around $17. borgwarner trading at 12 times earnings because people were worried about the auto business rolling over. we think a stronger economy is going to mean people are going to continue to buy cars at roughly the current rate and at 12 times earnings borgwarner is just too cheap. and the last one we love zimmer, hips and knees, unfortunately demand for hips and knees go up every year as people get older. people are not going to be as worried about price controls in hips and knees as they are in drugs. so we think zimmer is a great company. >> a lot of nodding heads at this table about that. really quickly, charles, is the strong dollar and european banking sector not a concern anymore for anyone? >> no, it absolutely is. that's why the dow hasn't rallied the way the small cap indexes have. becaus

the consortium including kkr and morgan stanley offered as much as 5.5 million u.s. dollars.a potential bidding war withholdings. the bid opened the fields to others. mark: thanks. markets, it is all about the fed. a number of hours to go. but let's see how equities are faring. a little lower. 4% rise since the trumpet election victory. the u.s. tenured yield rising yesterday, higher since you -- june last year. gold low ahead of a possible rate hike. fed day, bloomberg will have special coverage starting 6 p.m.. bloomberg surveillance continues in the next hour. guy johnson picks up in london. tom keene once him in new york. his is bloomberg. ♪ ♪ tom: is the first that of 2017. can trump reflation be sustained or is it a one-off event? call it a rate rise fed day. yellen will held a press conference, possibly suspending -- sis rain -- sustaining a reflation. will theyope's banks, move from the you -- unicredit restructuring? this is bloomberg surveillance. guy johnson,e and not as good-looking as francine lacqua, he is in london. a lot going on, but first, eu data. on the lo

maker -- a drug capital maker with a price of more than $5 billion, more than twice kkr pay for the companyrs ago. that is your bloomberg business flash. alix: thanks. coming up, saudis fight for market share. yes, they are cutting, but one region will still fight for the market share. we will break it down, next. this is bloomberg. ♪ the historic agreement between opec and non-opec. you have brent over $55 a barrel. rhetoric over the weekend, shock and awe -- saudis will do whatever it takes. the math is important to it we learned over the weekend that a lot of the non-opec cuts will be from natural decline rates. talkingwhat we're about. mexico, for example, the natural decline rate year at about day,00 barrels of oil a meaning those were declining a matter what they were going to do with opec and non-opec. colombia, as well. even oman. why do we care? many analysts have already factor this into their inventory estimates for 2017, meaning the punch this will have on the actual inventory number will be much less. and if opec does not fully comply with their cuts, it puts much more emphasis

in fact kkr owned part of the colonial pipeline. so we get all of these factors come together uniquely in the united states yes, we're fortunate, we are blessed to oil and gas in the shale with water nearby in most cases because it's a liquid intensive process. but again only here has that happened. that gives me again a degree of the key and rational optimism. i still thought that it from the ridley who writes about the mankind and how time after time mankind is confronted by a seemingly incidental obstacle, and after whatever it may be, the 30 years war, the black plague and again depleting energy reserves, whatever finds a way to go around, resolve it or what have you. so again in that sense i am a rational optimist. the challenge for our country though is that we do have policy headwind. in other words, that our shortcomings that can only be resolved by policy or one of these is infrastructure investment because we very much need to improve productivity. gdp is a function of workforce size and grows is a workforce grows times pr

. >> agreed to buy cap's itself from kkr, for $5.5 billion. of $2 billion.he biotech and specialty chemicals company focuses more on health care. gained market share for the first time since the start of its is the emissions scandal. counters --- it that is compared with 24.6% year earlier. the first gain since 2015. a sign bw may be consumer trust. yahoo! fell in extended trading after another security breach. it says an unidentified third users.ack one billion it is a leak that could allow ers to have accounts, posing threats to national security. that's the bloomberg business flash. i am sebastian salek. you're staying another half-hour with tom and i. yen, and you at at thisng governments point have to do anything because the fed will almost do his work for him. how do you work -- rate the governors role in 2017. it has always worked against him. steven: not to his own doing. the key point here is i would argue that the reason dollar-yen fell this year was because the market aggressively repriced the fed. and it was that big fall in 10 year and two-year

strike a multi-billion deal, and it could be more than $5 billion earlier this year there were reports kkr a deal. >>> and then the movie took in $18.8 million in north american ticket sales. and i bet i know who is going to win the box office next weekend. "rog "rogue 1." >>> and then the breakthrough energy ventures fund, and gates will serve as chairman of the fund and anticipates being actively involved. and among the other investors in the fund, saudi arabia's prince, and richard branson and bridgewater's ray dolly o. you can see the interview with bill gates here tomorrow morning on "squawk box." >>> turning now to the markets in 2017, will the trump rally of 2016 continue into the new year? and richard joins us, and there's some big picture predictions, i think, richard, and we are going to try and use it and still be -- how to use the big picture to drill down what we need to do on a daily basis, reflation. >> you refer to it as a trump valley and the dynamics driving the reflation theme was going to be before the trump win, and i wrote analysis that inflation data globally is pick

we have illustrated company having its best a since october after consortium with morgan stanley and kkr, among others with a $5.5 billion bid and is set to set up a potential bidding war. the stock did finish on the 2007.at a high since basically the best day in nine years. in the u.s., company, shares are higher in the premarket after a beaten race quarter. guidance above consensus by as much as 20%, the fourth turning in a row. not surprising that the stock was up more than 60% on the year. david: thank you very much. coming up -- my exclusive interview with alan greenspan. we talked all it takes and threats to u.s. growth. that's coming about 730 a.m. eastern time. this is bloomberg. ♪ david: this is bloomberg. president-elect trump's cabinet is coming together. rick perry is considered friendly to the oil industry will be nominated as energy secretary. joining us now from washington is marty shanker, bloomberg senior executive for politics. what do you make of this? put it together with rex tillerson and mr. pruitt, quite a few people from the oil packed. it is striking. the story t

the move following reports that the company is in talks with kkr on a deal worth $1.3 billion that couldreached sometime next month. >>> we talk about this a little, carrie fisher died yesterday at the age of 60. she had been hospitalized after suffering a heart attack while flying from london to los angeles. kurt gregory has more. >> reporter: carrie fisher was born in 1956 into entertainment royalty. the daughter of pop singer eddie fisher and actress debbie reynolds. at the age of 15, appearing as a singer on broadway's irene. her film debut was in 1975 in the comedy "shampoo." >> i don't know what you're talking about where e. >> reporte. >> reporter: two years later she blasted off to stardom in "star wars." she would return in empire strikes back and return of the jedi. sharing her time on movie sets and on broadway. behind the curtain fisher battled years of drug dependency and scandal. in 1983 she married singer paul simon, but the marriage ended eight months later. fisher turned to writing, publishing her first novel in 1987 "postcards from the edge." in all writing seven books,

the european commission says the -- kkr has agreed to by a majority stake from up to you.hey will remain a partial stake in octave. seaworld plenty to cut more than 300 jobs across its 12 parks including salaried and hourly workers. revenue has suffered in the face of a campaign by animal rights activists. that is your business flash update. what's turned to politics and president-elect donald trump turning up the heat on boeing. he said boeing is building a brand-new 747 air force one for new presidents but costs are out of control. $4 billion, cancel order. mr. trump: the plane is totally out of control. it will be over $4 billion for the air force one program and i think it is ridiculous. i think boeing is doing a little bit of a number. we want them to make a lot of money but not that much. david: a spokesman has responded we look forward to working with the u.s. air force on subsequent phases of the program allowing us to deliver the best lane for the president at the best value for the american taxpayer. we are currently under contract for $170 million. let's get mor

this came at a time when blackstone, carlisle and kkr, apollo, all the private big equity names haveeen looking to really expand beyond private equity. blackstone very interestingly has been wildly successful as kathy has documented well in the fund of hedge funds business. it is fighting other managers and giving them money. this is a big deal because they were going to start investing directly. there were high hopes. it's a pretty rare step. i think you would agree, kathy. they built this business essentially from nothing in 2000, into by far the world's biggest in terms of fund of hedge funds. there's a lot of hope riding on this. >> always enticing about getting into this space -- what was enticing about getting into this space? >> a lot of hedge funds have not been doing so well. this is a way we can get future caners in-house, and we give them $30 billion, maybe. it would take up a lot of capacity we needed to fill. >> server going to this broader point, they were not alone in doing this. one of the well-established private equity names, has gone pretty deeply into hedge funds,